1. Introduction

The Board of Directors of Malaysia Marine and Heavy Engineering Holdings Berhad (“MHB” or “the Company”) wishes to announce that Malaysia Marine and Heavy Engineering Sdn Bhd (“MMHE”), a wholly owned and major subsidiary of the Company, had on 26 July 2024 entered into a Memorandum of Understanding (“MoU”) with HD Hyundai Marine Solution Co., Ltd (“HD HMS”), to establish a partnership focusing on marketing and delivering green retrofit solutions, enhancing vessel energy efficiency, and reducing environmental impact. 

The consent from the relevant HD HMS, for MHB to release the information on the MoU to Bursa Malaysia Securities Berhad was obtained on 2 September 2024.

2. Salient Terms

The salient terms of the MoU are as follows: -

(a) MMHE will be HD HMS’ strategic partner for Green Retrofit solutions installation within the regional territory in Southern Asia; and

(b) the MoU shall remain valid and effective for two (2) years from the execution date with the option to extend for another two (2) years subject to written mutual agreement of both Parties.

3. Risk Factors

The risk factors involved in the MoU are expected to be minimal. MMHE has considered the risks and developed mitigation plans to ensure the successful execution of the MoU.

4. Financial Effects

The MoU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and shareholding structure of the Company for the financial year ending 31 December 2024.

5.  Director's and Major Shareholders' Interests

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of MHB has any direct or indirect interest in the MoU.

6. Directors' Statement

The Board of Directors, upon considering all the relevant aspects of the MoU, is of the opinion that entering the MoU is in the best interest of the Company.

This announcement is dated 3 September 2024.